People get accustomed to even the most noxious smells. Our daughter knows some people who keep ferrets. Their place smells like an untended zoo, but it doesn't seem to bother them.
The only time I can tell what our own house smells like is when we first come home after a week or so away. I can only sense it for a minute or less, then nothing.
You can always tell your friend that you have an "allergic reaction" to dogs.